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all of these advancements? Wouldn't youjust oncelike to see some facts that would let you know what you really need? Well . . . let's try to do just that. |
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First, we are going to assume that you will be using a ''direct access" broker, which is discussed in more detail in the next chapter. The important thing here is that, to take advantage of direct access, you will need a computer that is capable of processing a considerable amount of "real-time" data. Real-time means right now, instantly, with as little delay as possible. |
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What kind of real-time data are we talking about? The trader wants the fastest dynamic display possible of the "big three": |
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1. Quotes. These are the changes in posted prices. They aren't of much value if they are even a few seconds old. To get the best possible pricing in the market, you need quotes to be current within milliseconds (thousandths of a second). |
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2. Executions. If you are ready to make a trade, you want the very best price you can get, and the first order in line is the first to get filled. When you hit the button, you want the fastest possible speed to the market. |
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3. Confirmations. You want to know when a trade has been completed. There is nothing more frustrating than not knowing whether your trade has been executed or not. |
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Let's look at what you really need to handle the speed needed for direct access today. |
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Internet Service Provider |
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First, you will need an Internet service provider (ISP), which is the link between you and everyone else on the Internet. |
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Your ISP is your link to the rest of the world. It does a lot of important things for you, and all ISPs are not alike. Here are some of the things that are important to consider as you choose your ISP: |
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Bandwidth is a measure of the size of the "pipe" through which data moves between your computer and your ISP. "Bandwidth" and "connection speed" are the same thing. |
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